BSMR Risk Management Certification Preparation Level 1

This program is designed for banking professionals who wish to prepare for Level 1 Risk Management Certification for BSMR. In this program, participants will also be given additional exercise questions after every module and additional 100 exam test questions for self-learning. After attending this program, participants will have increased chance of passing the risk management certification exam. Based on our experience, the passing rate of participants after enrolling in this program is >90%.

This program can be delivered in English or Bahasa Indonesia based on request.

Certificate of completion (supplied by PasarTrainer)

Training Material

Multiple choice questions to test the proficiency level of the participants regarding the topic before enrolling in the training program.

Pre-Test (30 Questions)

1. Banks, risk and the need for regulation
2. Market Risk
3. Credit Risk
4. Operational Risk
5. Other risks
6. The potential consequences of failing to manage risks in a bank
7. The Indonesian banking system and regulation

In this module, participants will learn about the risks inherent in banking, why banks need to be regulated, the current regulations, different types of risks as set out in Basel II, impact of risk events and the key concepts of how to manage such risks. 

In addition, participants will also be given 10 exercise questions at the end of this module so they exercise at their own time after the training session is concluded.

The Nature of Risk & Regulation in Banking

1. Why banks are 'special' and need to be regulated
2. Original Basel Accord and capital adequacy for credit risk
3. The 'grid' and 'look up' table approach to capital adequacy and credit risk in Basel I
4. The bank capital requirements in Basel I
5. Basel I and the 1996 Market Risk Amendment
6. Weakness in Basel I Accord
7. The development of a new Capital Accord - Basel II

This program discusses the effects of solvency crises, liquidity crises, role of central banks, evolution of regulations, objectives of Basel I Accord and its application to credit risk, capital structure under Basel I, evolution of Basel I to accommodate market risk modeling, Value-at-Risk and also limitations of Basel I & Basel II. 

In addition, participants will also be given 10 exercise questions at the end of this module so they exercise at their own time after the training session is concluded.

The Evolution of Risk Management & Regulation in Banking

1. The Three Pillars of Regulation
2. Reasons for the Development of Basel II
3. Development of the Basel II Accord
4. Basel II and Risk Sensitivity
5. Basel II and Capital Adequacy
6. Minimum and actual capital

This module discusses key aspects of the Basel II Accord and examines its objectives, structure, coverage, risk sensitivity and relationship to capital adequacy. 

In addition, participants will also be given 10 exercise questions at the end of this module so they exercise at their own time after the training session is concluded.

The Development of Risk Based Supervision of Banks

1. The nature of market risk
2. Trading activities
3. Trading instruments
4. Pricing & mark-to-market requirements
5. Nature of treasury risk
6. Asset & liability management

This chapter provides an introduction to the nature of market and treasury risk. These risks will affect almost all banks and failure to manage them can have disastrous effects on a bank’s profitability and reputation. 

In addition, participants will also be given 10 exercise questions at the end of this module so they exercise at their own time after the training session is concluded.

The Nature of Market Risk & Treasury Risk

1. The nature of credit risk
2. The origin and use of credit analysis
3. Credit risk & Basel II

This module provides a more detailed discussion of the nature of credit risk. It looks at important credit risk portfolios and discusses in general terms the types of models banks commonly use to identify the different risks in each portfolio. 

In addition, participants will also be given 10 exercise questions at the end of this module so they exercise at their own time after the training session is concluded.

The Nature of Credit Risk

1. The nature of operational risk
2. Risk loss, expected and unexpected loss
3. Operational risk events
4. How operational risk is changing
5. Basel II & operational risk

This module is intended to provide the student with a firm understanding of the scope of operational risk. It breaks operational risk down into ‘risk categories’ giving actual examples of risk events, and outlines why operational risk is becoming important to supervisors. Finally, the chapter outlines the Basel II Accord requirements for quantifying and mitigating operational risk. 

In addition, participants will also be given 10 exercise questions at the end of this module so they exercise at their own time after the training session is concluded.

The Nature of Operational Risk

1. The importance of supervisory review
2. The four key principles
3. The nature of disclosure

This module discusses the supervisory review process as set out in Pillar 2 of the Basel II Accord. It explains the relationship between Pillar 1 and Pillar 2 and how the review process complements the capital requirements set out in Pillar 1. 

In addition, participants will also be given 10 exercise questions at the end of this module so they exercise at their own time after the training session is concluded.

An Introduction to Supervisory Review & Bank Disclosure Requirements

1. Stakeholders in banks
2. Principles of corporate governance for banks
3. Implementation of sound corporate governance

This module provides the participants with an overview of corporate governance in banks. It outlines the principles of corporate governance that provide banks with a framework for developing their own governance structure.

In addition, participants will also be given 10 exercise questions at the end of this module so they exercise at their own time after the training session is concluded.

Corporate Governance in Banks

1. The Role of Bank Indonesia & OJK
2. Risk Management - Structure & Scope
3. Risk Management - Limit Setting
4. Risk Management - Information & Analysis
5. Risk Management - Internal Controls
6. Risk Management - The Risk Management Unit
7. Risk Management - New Products & Services
8. Risk Management - Reporting Requirements
9. Risk Management - Supervisory Sanctions

This module, the final in Level 1 of the Indonesia Certificate in Banking Risk and Regulation, examines the Indonesian regulatory framework and the risk management regulation covering Indonesian banks.

In addition, participants will also be given 10 exercise questions at the end of this module so they exercise at their own time after the training session is concluded.

Indonesian Regulatory Framework & Risk Management Regulation

Multiple choice questions to test the proficiency level of the participants regarding the topic after enrolling in the training program.

Post-Test (30 Questions)

Participants will be given a set of exam test exercise questions related to the topic for self learning.